As more people travel each year, the number of accidents and injuries also rises. More than 11.9 billion tourists arrived in foreign countries in 2017, and these numbers continue to rise each year. With this comes and opportunity to cater to these travelers, helping them to protect themselves from the dangers inherent in traveling far from home.
The global travel insurance market is expected to be valued at more than $35 billion by 2025, according to Adroit Market Research. In 2019, UStiA found that Americans alone spent nearly $4 billion on Travel Insurance, a 40.6% rise from 2016.
Over the past ten years, the travel insurance industry has blossomed into a multi-billion dollar industry and it is forecasted to continue its impressive growth rate through the 2020s. There are a few reasons why travel insurance has such a big market right now. There are more people in the world today than ever before in history. Also, transportation is cheaper and faster, allowing more people to travel internationally with regularity.
No matter where or when people decide to travel there are a few universal risks that travel insurance can help to protect them against. When things completely outside of their control are becoming more common, travelers are likely to turn to travel insurance for financial protection in case their trips don’t go the way they had planned. Some key risks include:
- Natural Disasters: the increasing instances of extreme weather around the world mean that natural disasters are of more concern to travelers. Whether it’s a flight-grounding storm, erupting volcano or simply an unprecedented heatwave, natural events can have a huge impact on a traveler’s plans.
- Health Incidents: Being away from home exposes even the healthiest of people to new germs and unusual risks that make illness and injury more likely than in their everyday lives. Airplanes, in particular, are covered in all sorts of bacteria that could easily make travelers sick before they step foot in their destination country. A 2015 study from Travelmath found that tray tables alone had an average of 2,155 colony-forming units of bacteria per square inch. For comparison, your toilet seat at home has an average of 172 colony-forming units per square inch. Furthermore, outbreaks of deadly diseases like Ebola and Coronavirus are becoming the “new normal” and are almost impossible to predict.
- Terrorism: An ever-changing global risk, terrorism threats are a small but terrifying possibility for many travelers. In 2019, incidents in Nairobi, Kenya and Sri Lanka serve as reminders that there are still groups interested in large acts of destruction that can disrupt trips and end lives. Protection against worst-case scenarios can be very appealing, particular for travelers bound for politically-unstable areas or places where terrorism has been a problem in the past.
- Geopolitics: Around the world, politicians are being elected that are challenging established practices and disrupting diplomatic traditions that helped to defuse international disputes in the past. With more countries changing long-established norms, travelers may be worried about being denied entry to a country, or worse, being unable to leave. Travel insurance can be particularly important people who are a minority in their destination country, either because of ethnicity, gender or sexual orientation.
While concerning, these factors make travel insurance a worthwhile investment for many travelers. This presents an unprecedented opportunity for those supplying insurance plans that cover people internationally.
If you are a licensed insurance agent, you are likely already certified to sell travel insurance. If you are interested in learning more about tapping into this market, please reach out to us at firstname.lastname@example.org. Our team of licensed professionals can help you get started selling travel insurance to people around the world.